Our tenant paid a deposit of £675 in April 2004. When she leaves, is she entitled to receive interest back on the deposit as well as the deposit itself?

Fruitloop

jeffrey

06-11-2009, 12:55 PM

Our tenant paid a deposit of £675 in April 2004. When she leaves, is she entitled to receive interest back on the deposit as well as the deposit itself?
Before 6 April 2007, there were no Deposit Protection rules- so what does the Tenancy Agreement state about interest accrual?
In the absence of express provisions, and as the deposit does belong to T throughout, interest on it should also belong to T.

Fruitloop

06-11-2009, 13:02 PM

Thank you Jeffrey

I've just checked the agreement and it does in fact state no interest will be payable. We're on a periodic tenancy now but my understanding is that under a periodic tenancy, the conditions of the agreement remain the same in this respect. Am I correct?

Fruitloop

Poppy

06-11-2009, 13:04 PM

The terms of the tenancy agreement still apply to the statutory periodic tenancy.

Fruitloop

06-11-2009, 13:07 PM

Ah ok Poppy - does that mean that if we had a two months notice on both sides clause, that would still apply too?

Fruitloop

Poppy

06-11-2009, 13:18 PM

When the tenancy has lapsed into a statutory periodic basis, the tenant should give at least one month’s notice in writing ending at the end of a rent period.

I personally would accept a month’s notice whenever given. I would not try to hold on to tenants that wish to leave after the end of the fixed term.

Fruitloop

06-11-2009, 13:25 PM

Thanks again Poppy.

Fruitloop

jeffrey

06-11-2009, 13:56 PM

does that mean that if we had a two months notice on both sides clause, that would still apply too?
No. All provisions applying during the fixed term continue to apply during SPT except those relating to determination by Notice.
See s.5(3)(e), below, with my underlining:

5. Security of tenure.

(1) An assured tenancy cannot be brought to an end by the landlord except by obtaining an order of the court in accordance with the following provisions of this Chapter or Chapter II below or, in the case of a fixed term tenancy which contains power for the landlord to determine the tenancy in certain circumstances, by the exercise of that power and, accordingly, the service by the landlord of a notice to quit shall be of no effect in relation to a periodic assured tenancy.

(2) If an assured tenancy which is a fixed term tenancy comes to an end otherwise than by virtue of:
(a) an order of the court, or
(b) a surrender or other action on the part of the tenant,
then, subject to section 7 and Chapter II below, the tenant shall be entitled to remain in possession of the dwelling-house let under that tenancy and, subject to subsection (4) below, his right to possession shall depend upon a periodic tenancy arising by virtue of this section.

(3) The periodic tenancy referred to in subsection (2) above is one:
(a) taking effect in possession immediately on the coming to an end of the fixed term tenancy;
(b) deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy;
(c) under which the premises which are let are the same dwelling-house as was let under the fixed term tenancy;
(d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and
(e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy.